International Paper planning $103M upgrade to Cedar Rapids paper mill

International Paper is planning a $103 million expansion of its Cedar River Mill in Cedar Rapids, Iowa, after a Jan. 10 Cedar Rapids City Council vote unanimously approved a resolution to authorize sponsorship of a business financial application to the Iowa Economic Development Authority.

The Memphis, Tennessee-based packaging, pulp and paper producer confirmed the expansion to Recycling Today and says the project focuses on the mill’s steam supply.

RELATED: International Paper announces changes to senior leadership team

“Several years ago, our current process steam provider notified us that the coal boilers creating our steam at the Cedar Rapids facility would cease to operate on Dec. 31, 2025,” says Amy Simpson, corporate communications and marketing for International Paper (IP). “Knowing this outcome, the IP mill team, working side by side with teams of company experts, has studied several options for an alternate steam supply for our mill.”

Currently, the Prairie Creek Generating Station operates the facility’s steam power, but Simpson says one of the options being explored is to produce the steam on-site through the construction of two packaging boilers.

According to a Jan. 10 Cedar Rapids Council agenda, the proposed project provides for the construction of a new 20,000-square-foot building on the Cedar River Mill campus to accommodate the installation of new natural gas boilers and a water treatment plant. It includes a $103 million capital investment, with $20 million allocated for a building expansion and $83 million for machinery and equipment.

“We continue to work closely with the city and state on the project and appreciate their collaboration,” Simpson says.

The Cedar River Mill produces 100-percent-recycled containerboard and is considered one of the newest paper mills in the United States, starting operations in 1995.

The expansion project will add seven new jobs that meet the “high-quality wage” threshold, adding to the existing 240 jobs at the facility.